Beacon Power gets DOE nod for phase 2 funding for energy storage project

(ADPnews) - Apr 28, 2011 - US Beacon Power Corp (NASDAQ:BCON) today said it has received approval by the US Department of Energy (DOE) for the second funding phase for its 20 MW flywheel energy storage plant in Pennsylvania.

The second phase of financing under the DOE's smart grid grant programme allows the energy storage systems provider to draw up to 95% of the USD-24-million (EUR 16.2m) smart grid grant that it received in 2009.

Beacon Power said it would use the funds to pay project expenses, including material and component procurement, equipment manufacturing and installation, and for plant construction.

The money can refund almost the half of the plant's cost, which is expected to be some USD 50 million, the company said.

The DOE is now formally incorporating the facility budget into the programme plan and is expected to finish within six months.

Beacon Power said also that it had filed to raise USD 100 million in capital in one or more public offerings of stock, debt securities, depository shares, warrants or units. The company would use the proceeds to build merchant plants, manufacture flywheel energy storage systems for sale and fund ongoing operations.

(USD 1.0 = EUR 0.676)

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